AT&T to Place $9.5 Billion in Equity in Pension Plan

AT&T Inc. plans to contribute $9.5 billion in preferred equity to its underfunded pension plan, making it the latest company forced to address massive obligations accentuated by low interest rates.

Companies have tried to shore up their pension obligations, which tend to increase in a low interest-rate environment because the present value of those future payments rises. Earlier this week, Verizon Communications Inc. agreed to settle $7.5 billion in pension obligations, about a quarter of its total, through an asset...